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Christopher Elliot of MSNBC makes pathetic argument for airline re-regulation

Christopher Elliot. Another unreasoned voice of MSNBC.

I kid you not, that is the line for take-off at Seattle Tacoma airport. And Elliot believes the on-time performance should be better and we should re-regulate airlines because the government would do a better job. Guess what Chris, I wouldn't let the government anywhere near airlines until they can sort out the air traffic control mess that they preside over.

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Christopher Elliot called for airlines to be re-regulated. Elliot said, "If you're a passenger, you're seeing the results of a recklessly deregulated airline industry right now. Airlines treat us like cargo — and they get away with it because the government has taken a "hands off" approach to the industry." Elliot points out 8 different areas that the government should involve themselves in.

Ticket Prices

Elliot argues that airlines shouldn't be able to offer cheap fares, I kid you not. "Airlines shouldn't be allowed to offer unreasonably low fares" the elitest Elliot says. No longer should flying be for everyone, he believes we should pay through our noses for fares. However, the consumer has been the biggest benefactor of de-regulation. As the Brookings Institute points out, since federal restrictions on routes and fares were removed, consumers have been saving $20 billion a year on air fares, when adjusted for inflation, according to Brookings. Fares have dropped by more than 30 percent, on average, and as much as 70 percent when tickets are bought in advance, the group concluded. Indeed, if the negative of de-regulation was that airfares are as much as 70 percent cheaper than pre-deregulation, then things are looking quite rosey, aren't they?

Executive pay

"Delta Air Lines chief executive Richard Anderson will pick up stock awards worth about $13.6 million beginning next year as a reward for merging with ailing Northwest Airlines. Delta lost $50 million last quarter. Do you really need me to tell you this is madness?" Mr Elliot asks. Well, given Delta's fuel bill for the last quarter alone rose $800 million I'd say that's a pretty darn decent result! Let me know when you find a company that can improve year-on-year quaterly profits by $800 million.

Disclosure

"The price of an airline ticket must include all taxes, fees, surcharges, drinks and meals (on longer flights), a piece of checked luggage and a carry-on bag. The European Union is about to require this kind of price transparency. Why not here?" Elliot asks. "There's only one reason I can think of: By deceiving customers into thinking tickets are cheaper than they are" he asserts. Well, Mr. Elliot, I'm not sure when the last time you booked your own ticket was, but before you click "buy" on the internet you are told exactly what price your credit card will be charged for. Perhaps you should start telling Best Buy and Walmart to include taxes on all of the items they sell too before getting out the correct change at the cash register before realizing tax was not factored into the price of the CD you're about to buy.

Human rights

"Seats should come with minimum legroom and a minimum width, consistent with the average height and weight of passengers." Mr. Elliot says. If you want more room, pay for business class. Otherwise, sit yourself in your seat that is about 70% cheaper than it would otherwise be if you had your way, Christopher. "On longer flights, essentials like water and food need to be included in the price of a ticket" Elliot says. Guess what, Chris? They are! On transatlantic and transpacific flights, all food and drink (with the exception of some alcohol) is free. On shorter domestic flights, there is a charge for some food. However, airlines are happy for you to bring your own onboard. Should amtrak be forced to provide you with a three-course meal and complimentary wine? Additionally, Elliot asserts "Passengers shouldn't be imprisoned on a plane that's parked at the terminal without access to working restrooms." For your information, Chris, on aircraft with one restroom, aircraft by law are not allowed to dispatch in accordance with the MMEL (Master Minimum Equipment List) and MEL (Master Equipment List). Other aircraft with multiple restrooms are usually required to have at least the most forward restroom working in accordance again with both MMEL and MEL.

The truth

Elliot continues his tirade, "Airlines should be required to give passengers the facts about delays and cancellations. No more blaming the weather when it's actually a mechanical problem." I've never come across an airline that insists weather related problems have forced them to cancel a service when the sun is shining. In my personal experience, I've only ever had one flight cancelled. That was due to weather - aircraft are not designed to land in tornadoes or wind speeds in excess of 100 knots. You sure would be moaning if you were a passenger onboard an aircraft that did attempt it. I'll give you a hint - you wouldn't be alive to tell the tale. "No more "creeping" delays in which customers are strung along, often for hours, until their flight is canceled." Elliot adds. Unfortunately, when the problem is mechanical, it can often be difficult to put an accurate timescale on solving the issue. From personal experience, after a hydraulic leak on landing in Bologna that depleted all of the system B hydraulic fluid from our aircraft we attempted to find out if a local Italian Alitalia engineer a) had the qualification to fit the part onto a Boeing 737 and b) if a spare part was available in Bologna. If both a and b could satisfied, the problem could be rectified in about one hour. As was the case, the airline had to fly an engineer and a spare part on their later flight to Bologna and fit the new spare part and replenish the hydraulic fluid before the plane could then depart. All in all, the delay was about 5 hours. The issue was not the fault of the airline, the hydraulic valve that failed has lasted a lot longer on many other aircraft and was something that could not be forseen. The aircraft was properly maintained as per national aviation authority regulations and Boeing mandates. But events change and airlines do their best to keep passengers informed.

"Airlines should not be permitted to sell more seats than they have. That would take care of the problem of involuntary denied boarding — better known as "bumping."" Elliot insists. First, some airlines actually have a no-show rate of over 10% on certain routes. Why shouldn't they take advantage of that? If you want to stop the practice, people should start turning up for their flights on time! However, when you are bumped, it's not game-over. You're handsomely compensated with usually the minimum of a free trip in the future as a minimum. Some people are compensated more handsomely and it's very rare that people are bumped involuntarily. Often there are more than enough volunteers to take the offer of cash and free flights.

Finally, Elliot says that codesharing is "fundamentally dishonest and should be illegal." Speaking from experience, code-sharing has saved so much hassle for me. I can now travel from London to Indianapolis on ticket, despite travelling with two different airlines. I can fly British Airways to Chicago and connect seamlessly through O'Hare and onwards to Indianapolis without having to collect my luggage and re-check it. It reduces connection times, reduces hassle and increases the number of destinations that you're able to fly to. All airlines inform passengers when they sell a ticket if the carrier operating the service is not their own. It's not dishonest, it has complete transparancy.

Frequent flier programs

Regarding reward programs, Elliot "think[s] they're the biggest scam ever perpetrated on the traveling public". He argues that "airlines [should] tell us how many miles are outstanding" I'm not actually sure what that would achieve. "How many award seats are available on a given flight" some airlines do that. However, if they're not available you are unable to book them. If they're available for you to book it doesn't really matter how many there are, does it? Finally "how much our miles are worth. Oh, and award tickets should be free." Well they do tell you how much your miles are worth. The majority of airlines charge 25,000 for a domestic round-trip air fare, 50,000 miles for transatlantic round trips and generally double if you upgrade to business class. Here for example is Delta's award chart. Each airline has their own version. You need to look a little harder, Chris. As for award tickets being free, airlines just require the passenger pays the tax. That's fair, as the airline does not get a tax exemption if the passenger is on an award ticket. Frequent flier programs are great, I was able to book a free domestic US ticket between Los Angeles and Indianapolis for only the cost of the tax because I had flown round trip once betweeSon London, England and Auckland, New Zealand. Sounds like a good deal to me.

Passenger compensation

"In 2004", Elliot says, "the European Union adopted tough new airline passenger rights regulations that required airlines to compensate air travelers when flights were delayed and canceled." However, to his credit (for once) he notes that "Regulation 261 isn't without its problems (for example, it has a provision that lets airlines off the hook during "extraordinary" circumstances, which are not well-defined)". I'll define them for you Christopher. One such example is weather, which you alluded to earlier. In some circumstances, such as fog, certain aircraft legally are not allowed to descend below 200ft if they do not get visual contact with the runway. Some long-haul aircraft can land without visual contact with the runway, but these aircraft do not, rightly so, operate on every route. Therefore the airline cannot break the law to land an aircraft in inclement weather. That is an extraordinary circumstance that I do not believe an airline should have to compensate a passenger for, afterall, the airline cannot play God and lift the fog or stop hurricanes. However, airlines always allow passengers on cancelled services to rebook free of charge or receive a full refund.

Common sense

Elliot says, "airline tickets should be transferable. Changing the name on a ticket, particularly if you've made a typographical error, shouldn't cost an extra cent." He insists changing an e-ticket does not cost a cent. I'm not sure about Christopher, but I've never come across anyone willing to work for an airline for free. A paid employee has to make that change, therefore it's not free. However, insisting tickets "should be transferable" perhaps Mr. Elliot will write an article about Amtrak for us soon. Amtrak's website states, "Reservations must be made when required, and tickets are not transferable."

Elliot, clearly getting a little flustered, says " a ticket ought to represent an airline's obligation to get you to your destination when it says it will — not when it gets around to it." So, in your call for re-regulation, will you insist that the government-run air traffic control system is reformed to enable a larger aircraft flow? The large proportion of delays come down to air traffic control issues. Perhaps he will also support the construction of several new runways at La Guardia, Kennedy Intl. and several others throughout the USA where over-congestion causes knock-on effects to other services and airports. Unfortunately, an aircraft cannot take off or land without air traffic control authority and airlines cannot be held at fault for that, they can do nothing to help it.

Concluding, Elliot says "If you've made it this far in my deregulation diatribe, you've probably arrived at one of two conclusions. One, you think I'm a socialist." Yes, Mr. Elliot, I do. And not only that, but one with a very unconvincing argument, too. "Or two", Elliot adds, "you're wondering if it's such a good idea for the government to get involved in the airline industry. That's a reasonable response. To which I would say: No worse than if the government didn't get involved." I disagree.

The argument for re-regulation is underpinned, Elliot says, by the fact that "in the three decades before deregulation, the commercial aviation industry had only three unprofitable years. Since then, it's had 14 losing years." That's just US airlines though. Since privatization in 1987, British Airways has only failed to deliver a yearly profit once and that was in the year following the 9/11 terrorist attacks. Sure, airlines in the USA have been poorly managed over the years but there is reason for hope. After flirting with chapter 11, Northwest and Delta Air Lines have announced their merger will go ahead reducing a part of the problem with airlines struggling to be profitable - there has been too much capacity in the market. This consolidation, in addition to the US Airways and America West merger is a good step forward US aviation. The recent focus by Delta on foreign markets, in particular expansion into Africa, has caused revenues to rise and only posted a $26 million operating loss for the three months to September despite fuel costs rising $800 million in the same period. When you look at the state of the government's finances, I think it's quite obvious that Delta's fiscal progress is far more confidence-inspiring than the ballooning federal deficit.

The government doesn't do anything well, it won't help airlines.

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{"commentId":4202363,"authorDomain":"DrDanny"}

Elliot's profile says, "Christopher Elliott is a journalist and consumer advocate. His articles, columns and essays offer advice for people who want to become more informed travelers." I think we can safely say no one benefitted from his diatribe here. How he can credibly be called a consumer advocate while arguing for re-regulation is baffling.

{"commentId":4202363,"threadId":"428284","contentId":"2149457","authorDomain":"DrDanny"}
  • 3 votes
Reply#1 - Tue Nov 25, 2008 4:41 PM EST
{"commentId":4211348,"authorDomain":"divbyzero"}

I believe it was Continental that removed 2 rows of seats from its planes in order to give passengers more legroom.  I wish all airlines would because my knees are frequently touching the back of the seat in front of me unless I'm in an exit row. 

I do wish that airlines would practice some truth in ticketing.  Figure out how much it's going to cost to get from point A to point B, how much profit you want to make on that route, and charge that amount for all passengers.  As it is, if you pick 20 random people on a flight, you'll find 20 different ticket prices paid.

As for transferable tickets, prior to 9-11 it was possible to transfer a ticket to another passenger.  My wife and I were able to fly to Orlando to go to Universal Studios one year when one of her coworkers had an unexpected change of plans.  We bought the tickets from her for half price and that was that.  All the airlines cared about at the time was that a male and a female were flying on those tickets, not that the names matched.  Overnight, 9-11 got rid of the secondary ticket market, and stuck passengers with tickets that were non-transferable and non-refundable.

{"commentId":4211348,"threadId":"428284","contentId":"2149457","authorDomain":"divbyzero"}
    Reply#2 - Wed Nov 26, 2008 2:00 PM EST
    {"commentId":4212386,"authorDomain":"DrDanny"}

    A few different airlines have flirted with removing seat rows in their aircraft. American Airlines had a big program called "More Room in Coach" to increase seat pitch - however, if you want more legroom, there are business class seats that give you that extra space. There is very little difference between different economy class products on domestic flights in the USA because almost every traveller will choose their airline based upon which is the cheapest - not who gives the most legroom, best inflight entertainment or best food. Thus airlines cater to those people in their "cheap" class. Those that want more and are willing to pay for it get a better product in business class.

    Regarding ticketing, revenue management models have become big business and are well-guarded secrets for most airlines. The reason you'll find different prices is because they all booked at different times. If they practiced what you said they'd all probably lose out because not every flight sells every seat. Some flights have more demand than seats available, hence they can sell those seats at higher prices. It's a complex model dealing with supply and demand. That's why, 9 times out of 10, if you book a long time in advance when very few seats have been sold on a flight, you'll get a very cheap deal. I believe UK train companies use a similar practice, I don't know about Amtrak or Greyhound, but I'm guessing it won't be far different.

    The issue with names matching really is beyond the airlines' control - security dictates that they know who the passenger is that's boarding their flight. There's a federal no-fly list and airlines have to comply with that. There are still refundable tickets - but you'll pay more for the priviledge.

    {"commentId":4212386,"threadId":"428284","contentId":"2149457","authorDomain":"DrDanny"}
    • 2 votes
    #2.1 - Wed Nov 26, 2008 3:27 PM EST
    {"commentId":4212628,"authorDomain":"divbyzero"}

    Since it is possible to buy an airline ticket on the same day of travel, the security argument doesn't quite hold water with me.  Why could you not have a transferable ticket but require the passenger to produce photo ID upon checking in?  The name could be run through the database at that time, in the same way that it is done with a same-day ticket purchase.  In the system that I envision, passengers with transferable tickets would not be able to print a boarding pass online.

    {"commentId":4212628,"threadId":"428284","contentId":"2149457","authorDomain":"divbyzero"}
      #2.2 - Wed Nov 26, 2008 3:52 PM EST
      Reply
      {"commentId":4212806,"authorDomain":"DrDanny"}
      Since it is possible to buy an airline ticket on the same day of travel, the security argument doesn't quite hold water with me.

      But you're still booking it in the same name as the person travelling regardless of when you purchase the ticket. I think it's very much to prevent a black market arising where highly in-demand flights have seats that are re-sold for many times more than the original value of the ticket and is a way of protecting against lost income. I know this kind of thing goes on at sporting events all over the world and the airlines are playing by those same rules. However, to know all of the reasons behind it, you'd probably have to ask someone in the know. I can ask around at work, but it may be some time before I can get you a satisfactory answer.

      {"commentId":4212806,"threadId":"428284","contentId":"2149457","authorDomain":"DrDanny"}
      • 2 votes
      Reply#3 - Wed Nov 26, 2008 4:11 PM EST
      {"commentId":4328794,"authorDomain":"mkguzi"}

      With airline deregulation, I can't even get my beloved baggy of peanuts.  No water, air or anything,  Wait a minute the government can and should have more regulatory control over the airline industry.  Why let a private company police itself.  God knows it won't do a good job.  Try flying in highly unregulated central Africa if you like deregulation.  The dudes flying the planes can't even drive a church bus, let alone an airplane.

      {"commentId":4328794,"threadId":"428284","contentId":"2149457","authorDomain":"mkguzi"}
      • 1 vote
      Reply#4 - Sun Dec 7, 2008 12:19 AM EST
      {"commentId":4361426,"authorDomain":"DrDanny"}

      You most likely can't get peanuts because someone would sue the airline for aggravating their peanut allergy. However, whenever I've flown on Delta I've been offered peanuts. I've never known an airline to refuse a passenger water, either. In fact, the vast majority of US airlines offer free complimentary bar service even in coach. I think it's pretty pathetic that people think a government body should force airlines to sell peanuts. Come on.

      And your comment regarding African airlines is a little unfair. While a few African airlines have a poor safety record, some of them have very good safety records. In every ICAO country (which is practically every country on earth) it's illegal to be commander of an aircraft without holding the appropriate pilot's licence. Europe also has a deregulated airline industry - the best airline I've ever had the pleasure of doing business with is European-based. De-regulation relates to the economic environment - not the safety aspect, which is highly regulated the world over by state aviation authorities as well as the airlines themselves.

      {"commentId":4361426,"threadId":"428284","contentId":"2149457","authorDomain":"DrDanny"}
      • 1 vote
      #4.1 - Tue Dec 9, 2008 3:51 PM EST
      {"commentId":4362385,"authorDomain":"divbyzero"}

      In fact, the vast majority of US airlines offer free complimentary bar service even in coach.

      Depends on the airline.  Some will offer water in a cup for free but soda or bottled water will cost you.  On my most recent flights alcoholic beverages were going for $5, sometimes $7.  Some airlines are charging for a "snack pak" of assorted goodies usually for $5.  Some airlines will take cash, while others insist on plastic only.

      {"commentId":4362385,"threadId":"428284","contentId":"2149457","authorDomain":"divbyzero"}
        #4.2 - Tue Dec 9, 2008 4:50 PM EST
        {"commentId":4362933,"authorDomain":"DrDanny"}

        Sure, alcholic beverages will cost you extra (although many airlines, such as British Airways, do not charge extra for alcohol). But I've never come across an airline that charges you for water. Air Tran and Southwest may charge for water, I don't know, but that's probably because you're paying considerably less for your airfare to begin with. Secondly, there's nothing preventing you from bringing your own beverages or food onboard. The vast majority of airports have a vast array of food outlets so you can fill up your stomachs before the two hour flight you're taking. Surely people can last that long without eating, right?

        Just curious, do Amtrak or Grayhound buses offer complimentary alcoholic beverages or food? Should be insisting the government ensures that those two transport providers do what you're asking of airlines? Why are we just picking on the airlines that offer very low airfares to travel long distances pretty darn quickly and safely?

        {"commentId":4362933,"threadId":"428284","contentId":"2149457","authorDomain":"DrDanny"}
        • 2 votes
        #4.3 - Tue Dec 9, 2008 5:24 PM EST
        {"commentId":4371068,"authorDomain":"divbyzero"}

        Secondly, there's nothing preventing you from bringing your own beverages or food onboard. The vast majority of airports have a vast array of food outlets so you can fill up your stomachs before the two hour flight you're taking. Surely people can last that long without eating, right?

        In theory there's nothing preventing you from getting a beverage, snack, or meal before boarding the plane but it doesn't always work out that way.  On one flight I took back in July, I was supposed to have nearly a 4-hour layover in Atlanta.  They kept pushing back my departure by 10-20 minute increments at a time so I really couldn't stray too far from the gate because we "might be boarding at any minute" apparently.  I really wanted to get something to eat but the lines were long at all the nearby places, and besides, I was still looking at a significant layover in Atlanta and could eat then.  We finally boarded and pushed back from the gate, taxied out, then sat there...for over an hour.  While in the air, beverage service had begun but then we encountered so much turbulence that it had to be called off after they had only served about 6 rows of passengers.  To make a long story a little shorter, by the time we got to Atlanta that 4-hour layover had evaporated entirely and I was left running to get to my connecting flight, having not received a snack or a beverage in the past 6 hours or so.  By the time I finally reached my destination and checked into the hotel it was nearly midnight and I had eaten 2 small bags of pretzels and drank half a can of cranberry juice for the whole day since leaving the house that morning.  It wasn't the best day for travel! <grin>

        {"commentId":4371068,"threadId":"428284","contentId":"2149457","authorDomain":"divbyzero"}
          #4.4 - Wed Dec 10, 2008 10:48 AM EST
          Reply
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